The opportunity for public comment on whether the City of Cape Town should sell its share in the Cape Town International Convention Centre (CTICC) is currently open and will close on October 6.
The city announced last month that it is exploring the possibility of selling its 72.7% stake in the CTICC, stating that the asset has reached “a level of maturing that makes it well-positioned to transition to private-sector ownership”.
The city is the biggest shareholder in the CTICC, which opened its doors in 2003. The remainder is held by the Western Cape government (22.2%) and Sunwest International (currently 5.1%). The city estimates its share is worth almost R885 million (US$51.2 million).
A statement released by City of Cape Town Manager Lungelo Mbandazayo, as part of the public commentary process, states: “The private sector is better equipped to unlock the CTICC’s growth trajectory with the flexibility and capital to enhance its commercial potential while preserving its role as a national economic asset.”
The city also states that the sale will allow it to concentrate on its constitutional mandate: the provision of essential services and infrastructure.
CTICC performance
According to the latest available financials in the 2023/24 annual report, the CTICC achieved R400 million (US$23.1 million) in revenue and R243 million (US$14 million) profit. This was a significant increase from a profit of R17.6 million (US$1 million) the previous year.
In its 2025/26 budget, presented in June this year, the CTICC indicated it was targeting revenue of R461 million (US$26.7 million) and a total of 390 events. Of the estimated revenue, R200 million (US$11.6 million) would be derived from venue rentals for events, R176 million (US$10.2 million) from catering, food and beverages and R66 million (US$3.8 million) from other services including parking and sub-contracted services.
Impact of the sale
The city says the sale will not impact operations of the CTICC.
“The city’s consideration of a possible sale of its shareholding will not affect the CTICC’s ability to host and deliver events in the short, medium or long term. Should the city divest, the transaction will be structured to ensure that the CTICC continues to operate as a premier eventing and conferencing facility. Therefore, there will be no disruption to event organisers, clients or bookings.”
Divesting will allow the city to reallocate resources more effectively, “reinforcing service delivery and long-term fiscal sustainability while enabling the CTICC to thrive under a more commercially agile ownership model”.
Comments on the sale can be submitted here.
